Why Does YouTube Withhold Tax From Non-U.S. Creators?
Google, which operates the YouTube Partner Program and pays AdSense earnings, is classified as a U.S. withholding agent under the Internal Revenue Code. U.S. withholding agents are legally required to collect tax information from all payees — including those outside the United States — and to withhold a percentage of payments when that information is not on file.
For non-U.S. creators, the default withholding rate is 24% of total worldwide earnings if no tax form is submitted. If you submit a tax form but do not have a valid U.S. taxpayer identification number, Google applies a 24% withholding rate to your U.S.-sourced earnings only — that is, revenue generated from viewers in the United States.
If you do provide a valid ITIN and a correctly completed tax form (typically IRS Form W-8BEN), Google can apply the withholding rate specified by the tax treaty between the United States and your country of residence. For many countries — including Canada, the United Kingdom, Australia, Germany, and dozens of others — the treaty rate on royalty income is 0%, meaning no withholding on U.S.-sourced earnings at all.
What the Withholding Rates Mean in Practice
The difference between having an ITIN on file and not having one can be significant, depending on how much of your audience is based in the United States. The table below shows how the three scenarios compare.
| Situation | What Google Withholds | Applied To |
|---|---|---|
| No tax form submitted | 24% | Total worldwide earnings |
| W-8BEN submitted, no ITIN | 24% | U.S.-sourced earnings only |
| W-8BEN submitted with valid ITIN, treaty country | 0% (treaty rate for most countries) | U.S.-sourced earnings only |
YouTube classifies AdSense revenue as royalty income for U.S. tax purposes. Most U.S. income tax treaties include a provision that reduces the withholding rate on royalties paid to residents of the treaty country — often to zero. To claim that reduced rate, you must provide Google with a completed Form W-8BEN that includes your ITIN.
How to Apply for an ITIN as a YouTube Creator
The application process for a YouTube creator is the same as for any other non-U.S. resident applying for an ITIN. You complete IRS Form W-7 and submit it with identity documents and supporting documentation that establishes your tax purpose.
For most YouTube creators, the appropriate route is to apply under one of the IRS exceptions that allows an ITIN application without attaching a full U.S. tax return. Specifically, Exception 2 covers non-residents receiving U.S.-source income — including royalties — who are claiming a reduced withholding rate under a tax treaty. Under this exception, you submit Form W-7 alongside a completed Form W-8BEN and a letter from Google confirming the income and the treaty benefit being claimed.
The steps are:
- Confirm your country has a tax treaty with the United States that covers royalty income.
- Obtain a withholding statement or income letter from Google confirming your AdSense earnings and the applicable treaty claim.
- Complete IRS Form W-7 (December 2024 revision), selecting the appropriate reason box and exception.
- Have your identity documents verified — either by mailing originals to the IRS, visiting a U.S. IRS Taxpayer Assistance Center, or working with a Certified Acceptance Agent.
- Submit the complete package and wait for the IRS to issue your ITIN — typically 7 to 11 weeks.
- Enter your ITIN into your Google AdSense tax information settings.
For a detailed walkthrough of every field on Form W-7, see the Form W-7 line-by-line guide published on nolly.com.
Why Working With a Certified Acceptance Agent Matters
The most common obstacle for non-U.S. YouTube creators is the identity verification requirement. The IRS requires either original documents or documents certified by an authorized source — a notarized photocopy is not accepted and will result in rejection.
A Certified Acceptance Agent (CAA) is an individual or organization that the IRS has specifically authorized to verify and certify identity documents on its behalf. When you work with a CAA, you present your passport or other accepted documents for review, and the CAA certifies copies that accompany your W-7 application. Your original passport never leaves your hands and is never mailed internationally.
This matters for creators applying from outside the United States, where mailing original documents abroad introduces transit delays, loss risk, and weeks without a primary travel document. The CAA route eliminates all of that. nolly.com’s team includes IRS-Certified Acceptance Agents and handles the complete application process — from document review to IRS submission — for creators worldwide. You can learn more about applying without mailing your passport before getting started.
For a broader look at what documentation the IRS requires and how certified copies differ from notarized ones, see the complete ITIN document guide.
Frequently Asked Questions
Does every non-U.S. YouTube creator need an ITIN?
Not necessarily — but without one, you cannot claim a tax treaty benefit, and Google will withhold at the default rate. If your country has a U.S. tax treaty covering royalties and you want to reduce or eliminate withholding on your U.S.-sourced earnings, an ITIN is required. Creators whose countries have no U.S. tax treaty still benefit from providing a W-8BEN, which limits withholding to U.S.-sourced revenue only, but cannot reduce the rate below the statutory amount without a treaty and ITIN.
Can I get a refund of tax already withheld by Google?
If Google has already withheld U.S. tax from your AdSense earnings, you may be able to recover some or all of it by filing a U.S. nonresident tax return (Form 1040-NR) for the relevant tax year. To file that return, you need a valid ITIN. The 1040-NR would report your U.S.-sourced income, apply the applicable treaty provisions, and calculate any refund owed. Filing a return is the only way to recover previously withheld amounts — it does not happen automatically.
How long does it take to get an ITIN and update my AdSense account?
The IRS typically takes 7 weeks to process an ITIN application outside of peak tax season (January 15 to April 30), and 9 to 11 weeks during peak season or for applications submitted from outside the United States. Once you receive your ITIN notice from the IRS, you update your tax information in Google AdSense — the new withholding rate applies to payments from that point forward. Starting the application early is the most effective way to minimize the period during which the higher withholding rate applies.
Ready to Apply for Your Creator ITIN?
nolly.com prepares and submits your ITIN application — including Form W-7, identity document certification, and all supporting documentation. Our IRS-Certified Acceptance Agents verify your passport in-house so it never leaves your hands.
nolly.com is a private, independent platform and is not affiliated with any government agency. ITINs and EINs are issued solely by the Internal Revenue Service. nolly.com assists clients in preparing and organizing documentation and does not issue, register, or approve any government identification number. This article is general information, not tax advice. Individual circumstances vary.
